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Car purchase dilemma

apples23

Member
Dec 13, 2016
63
18
Toronto, Canada
Hey Guys

Was hoping to get some opinions here. I'm currently driving a 2017 MS 75d that I've owned for about 2 years. It's more or less the uncorked version with autopilot, Air Suspension, and textile current gen seats.

I'm not necessarily a high end car buyer, but really liked the tech so splurged. I also live in a condo, with no charger, so have to leave my car on the Chademo at the building next door every 3-4 days to charge (more often in the winter).

Lately, i've been getting the urge to cut my payments as it's a heavy monthly, so have started to look into some less expensive cars...namely the new BMW 3 series (which is gorgeous) and the Model 3

This morning, I got a trade estimate on my MS from Tesla that is literally $16000 less than what BMW or Mercedes are willing to offer me. That would mean that I based on what i currently owe on the Model S, I would be upside down by $6k with Tesla (i originally also put $20k down on the car)

With the trade differential, the Model 3 SR + would work out to be about $100 more a month than the new BMW 330i loaded. I wanted to get some opinions on the SR+. Do you think Id notice a massive range difference from my 75d? Also, I understand that there are a few features missing. Is there anything that's a stand out loss here? I've read endlessly about the RWD in winter, and owned a S85 prior to my current 75d so am familiar with the drive difference.

Would love some opinions? What would you do?
 
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SR22pilot

Member
Jun 16, 2014
720
1,112
Georgia
First thing I would do is look at Kelly Blue Book and see what I could directly sell my car for. I had a 2013 Genesis R-Spec. KB said about $15-$17K. Between Tesla and CarMax, one offered $7K and one $9K. I sold it myself for $15,900.

Trade-ins at dealers can be made to look large since they then don't discount the car. Again use Edmunds or KB to see what a cash price for the BMW should be. That will tell you what they are really allowing for a trade-in.

I just NEVER want to go back to ICE; even a very nice ICE.
 
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sakimano

Active Member
Mar 20, 2017
1,374
836
Ontario, Canada
keep your model S. Pretty simple decision. Trading cars is very expensive as you're losing markup, short term depreciation etc.

Doing so to 'save' money is for suckers. Keep the 75D and tough it out. Payments are irrelevant if you're going to be poorer in the long run by switching to something 'cheaper'.

Look at what your Tesla was when you bought it vs. what it will be worth in 3 years. Figure out what that depreciation is.

Then do the same thing with selling your tesla for squat , buying a new ICE car and going way backwards into a way worse, entry level faux luxury car, and figure out what that car will be worth in 3 years (likely about 37% less than what its worth new).

I can pretty much guarantee keeping your tesla will leave you financially better off in the long run.
 

bwalter

Member
Mar 18, 2019
201
92
Vancouver, BC
As others have said, sell privately and be aware you can't use the CHAdeMO adapter with the Model 3 so that may eliminate it as an option. I'd eliminate the 3 series as well, since I can't see myself going back to ICE.

For the $100/month difference, did you factor in fuel cost? Based on your charging frequency I'd guess you're driving about 1500 km/month? You'd probably be spending $150/month on gas for the 3 series.
 

duanra

Active Member
Dec 14, 2018
1,266
730
Montreal
I don't know about the money thing but...
a few weeks ago, i brought my M3 for service and the sc loaned me a nice 2018 bmw 318 something. I didn't like it, althought it is certainly a very good car, i really don't want to go back to ICE if i can manage it.
 

apples23

Member
Dec 13, 2016
63
18
Toronto, Canada
My dilemma is this:

First and foremost, switching to the bmw would save about $500 a month, and the model 3 $400 a month

Secondly I have concerns about the value of my Model S. There are still 5 years left of payments on the car and it seems like the tech is evolving so quickly that I worry that they value of the car is depreciated exponentially. The Model 3 already seems so much more evolved. Based on the trade value tesla is offering me right now it’s a 40% hit in less than 2 years. That’s outrageous. I see this more as an opportunity to get out and am worried that I may not be able to later. I’m worried in 3 years I’ll be stuck with a dinosaur that I’ll still have years of payments left on.

When I was in the tesla dealership today, the sales rep was showing me a bunch of new MS battery changes that the dealers were just notified about, and already it felt like mine was obsolete. They had brand new 2018 inventory 75ds loaded selling for $89k Canadian.

Lastly, I feel really frustrated that Tesla is coming in that low on a trade. I understand that’s part of the way that they’ve always operated, but it seems like there’s a pretty serious loyalty issue to their customer base. There is a $15000 differential? And bmw is already discounting the car by $5500 on top of the $15k trade difference.
 

stevedavies76

Member
Oct 24, 2018
38
6
Vancouver, BC
Something that hasn't been mentioned, you should get credit on your trade-in for the taxes as well. So that is one plus vs selling privately.
I would also expect a brand new BMW to experience something similar to a 40% depreciation over the next 2-3 years as well. At least with the MS / M3 you're in the right direction from a technology perspective. In general, its fair to say that EV's should be holding their value better than comparable ICE - especially Tesla's. The thing about the tech is that since the industry is evolving so quickly, all the current vehicles will be left behind in a few years. At least you'll have one advancement in your back pocket (EV vs ICE) and if you have invested in a longer-range EV, that should help as well.

I bit the bullet and bought my first ever brand new vehicle (LR, RWD M3) in November. We could afford it, understood that depreciation will hit it, but we'll also be saving massively - especially with $1.80/L petrol in Vancouver! If you're concerned about your car depreciating I'd suggest picking up a gently used vehicle 3-5 years old. If you can afford a new car, I wouldn't hesitate with an M3, but all new cars are going to worth 20% less as soon as you leave the lot - especially with the advancements of tech these days.

Sounds like you may have stretched yourself to get into the S - to that I'd suggest you'll most likely sleep a heckuva lot better if you're out of that loan. Not that you should ever take financial advice from the internet: Figure out what you're comfortable throwing away on a car (it isn't going to appreciate), of that amount what will give you the most satisfaction / utility. And when it comes to depreciating - Toyota's / Lexus and Tesla's top the list for holding value. BMW are dreadful for depreciating, and maintenance will only add to the pain outside of warranty.

Good luck, and sleep well!!
 
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Vawlkus

Active Member
Feb 28, 2017
1,629
843
Halifax
Tesla does not WANT your trade in, it’s more work for them the handle it.

I’d sell privately (we WILL get more), and pick what car you want more.
 

ewoodrick

Well-Known Member
Apr 13, 2018
5,285
3,733
Buford, GA
Hey Guys

Was hoping to get some opinions here. I'm currently driving a 2017 MS 75d that I've owned for about 2 years. It's more or less the uncorked version with autopilot, Air Suspension, and textile current gen seats.

This morning, I got a trade estimate on my MS from Tesla that is literally $16000 less than what BMW or Mercedes are willing to offer me. That would mean that I based on what i currently owe on the Model S, I would be upside down by $6k with Tesla (i originally also put $20k down on the car)

Would love some opinions? What would you do?

When BMW is offering you a trade-in value, is that just a "we will purchase at that price today" or a "we'll give you that amount off of a new car purchase"? If the later, that's auto dealer "screw the buyer" practice number 1. NEVER EVER talk the price of a new car with the trade-in included. Never mention that you will have a trade-in when buying. ONLY mention the trade-in when the negotiating the new car price is complete.

The trick is that they will give you 20,000 value for the used car, ONLY because they are reducing the price on the new car by 16,000 and actually crediting the trade-in at 4,000.

You will always get a better deal with a private sell. If you have time and can do it, just list it now and see if it sells for a great price. Any time a car goes through a dealer, the dealer takes money, the auction house takes money, the reselling dealer takes money, that's money that you don't have to pay in a private deal.

In the states, Carmax seems to be generally the best purchaser of used cars. If you can, get them to quote the car.

What you are dealing with, and should be VERY AWARE of is that Tesla has a price and doesn't really negotiate that price. Pretty much every other dealer has a sticker price and you should never pay anything close to that price. Look at the dealers and see how many $10,000 off stickers are in the windows.
 
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